3 major developments to change the face of Cardiff city in 2016
Cardiff is a city in demand and is attracting the attention of major occupiers, investors and developers. The Cardiff office market has bounced back strongly from quarter 2 following a disappointing first quarter with Q2 take-up amounting to just over 141,000 sq ft, according to the 2015 Cardiff Office Market review from commercial property consultancy Knight Frank.
The three most significant leasing deals, all of which involved Knight Frank acting on behalf of the landlord, were the relocation of The AA from St Patrick’s House to 15,720 sq ft of newly refurbished space at Capital Tower, Network Rail’s move to the first floor at Number 1 Capital Quarter and Deloitte’s lease at Six Park Street where the company took 24,500 sq ft adjacent to Central Station as part of its expansion in the city.
Now the focus is on the developments of Central Square and the Capital Quarter. These current projects are set to create a huge increase in much sought after grade A office space which will be available for firms looking to expand as well as new investments into the capital. Knight Frank’s managing partner in Cardiff, Matt Phillips, said: “The recent decision by Legal & General to commit to the Central Square scheme in Cardiff – the largest transaction in Wales to date with a projected value of up to £400m – has provided another example of the growing recognition of Cardiff as a UK business centre. “The scheme will serve to encourage other investors to invest in the Welsh capital.”
Central Square
Work on the new BBC Wales headquarters, scheduled for completion in early 2019, will begin next week by ISG. The HQ will house 1,200 staff across four office flours including studio and production space. ISG are beginning work within the next week on the headquarters as well as the 2 Central Square office scheme as part of the Central Square regeneration project. The 2 Central Square office scheme will run alongside the new BBC Wales HQ at 120,000 sq ft and extend to seven floors with retail space at ground floor level.
According to research from BOP Consulting, the project will have a direct and indirect gross value added economic impact of £1.1bn which is an impact equivalent to 1,900 jobs at full-time hours. This will impact many job sectors including tourism, construction and creative industries. The project is set to attract further business investment into Central Square and the wider surrounding areas.
Capital Quarter
JR Smart, based in Cardiff, has revealed plans of a new office building in the Capital Quarter development. The work, subject to planning consent, will produce a new 75,000 sq ft grade A office scheme at 1 Capital Quarter and will begin in March 2016. Alongside this, JR Smart will complete the 84,000 sq ft 2 Capital Quarter building in which the South East Wales division of Public Health Wales has agreed 50,000 sq ft for their new headquarters. Alongside this will be a car park providing 300 spaces. Work is expected to start in March 2016.
Callaghan Square
It is expected that five acres of yet to be developed land is soon to be put on the market with planning consent for the first phase of a 90,000 sq ft office scheme. The Welsh Government are set to put this on the market soon and should confirm the investment sale of its 1 Capital Quarter building, which was acquired from JR Smart in 2013 in a £15m deal, in the New Year. The construction is likely to be completed by the end of 2015.
The full site is actually 500,000 sq ft which means that once the new offices have been constructed, there will still be opportunity for further developments and plans.
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